Solid Energy

Solid Energy is a New Zealand government-owned coal company which operates a number of mines on the West Coast and Southland on the country's South Island, and the Huntly mine in the Waikato on the North Island. Solid Energy has become notorious for its aggressive response to environmental critics, such as through the use of legal actions and the hiring of a private investigator who hired an infiltrator in one group.

Coal Mining
In its 2007 Annual Report, Solid Energy states that its tottal revenue was NZ$564.4 million from 4.8 million tonnes of coal, of which 2.19 million tonnes were exported and 2.61 million tonnes were sold to customers in New Zealand. 44% of the coal sold in New Zealand was for use in coal-fired power stations with a further 31% sold for use in steel production. The company lists its major NZ customers as being -- in order of volume-- New Zealand Steel, Genesis Energy, McDonald's Lime, Holcim, Westland Dairy and Fonterra. The next largest consumer was 9% of sales to customers in the dairy sector and 4% each to companies in industrial processing and meat industries. Of export sales, Japan accounted for 37% of the volume, India 36%, Chile 12%, South Africa 9%, China only 3% and Australia and Europe 2% and 1% respectively. In the last decade, the total amount of coal mined by Solid Energy has increased from just under 3 million tonnes in 1997 to 4.8 million tonnes in 2007.

Solid Energy's coal mining interests include:
 * Stockton Mine 1.94 million tonnes
 * New Vale Opencast Mine
 * Spring Creek Underground Mine -- a joint venture with Cargill -- 293,600 tonnes
 * Ohai Opencast Mine - 175,000 tonnes
 * Terrace Underground Mine - 56,200 tonnes
 * Rotowaro Opencast Mine - 1.58 million tonnes supplying the Huntly Power Station
 * Huntly East Underground Mine - 406,700 tonnes -- mostly for supplying New Zealand Steel

Carbon Capture and Storage Research
In its 2007 Annual report, Solid Energy's Chairman, John Palmer, and CEO, Don Elder, wrote that "together with our studies into the best uses of our huge lignite resources in Southland and Otago, we are looking at the opportunity for gasification of coal and for the underground storage of CO2. For the last two years, and the next 18, we will invest more than $100 million in research and development into applying clean coal technology to New Zealand conditions, new ways of using coal and alternative new energy sources. This is a commitment of $1/ tonne of our annual coal production, compared with the Australian coal industry’s research fund which is based on an industry levy of 20 Australian cents a tonne of black coal.

The company also states that in October 2006 "we began an assessment of possible sites for permanent storage of CO2 in several locations in the south of the South Island. ... Similar work is planned in Taranaki and the Waikato."

Solid Energy is also a member of the Coal 21 consortium, investigating Integrated Gasification Combined Cycle (IGCC) power generation system and the prospects of carbon capture and storage. It is also a member of the board of the Australian-based Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC).

Groundwork for Lignite to Liquid Fuels
Solid Energy is also investigating the development of a liquid fuels plant based on the Mataura and Croydon coalfields in eastern Southland, which it claims contains sufficient "lignite resources to support as world-scale liquid fuels plant for more than 40 years". In March 2007 the company commenced "a $4 million drilling programme in the Mataura and Croydon coalfields designed to further define the quantity and quality of the lignite resources" and that "geotechnical and environmental baseline data are also being gathered for mine design and environmental effects assessment purposes."

Opposition to Stockton Mine
Solid Energy has faced persistent opposition to its development of the Stockton mine near Westport on the west coast coast of New Zealand's South Island. In particular, environmentalists have argued that because of the presence of the endemic native land snails, Powelliphanta "Augustus", from the Mt Augustus ridgeline of Stockton Opencast Mine, the project should not proceed. Instead, the company gained approval for the collection and relocation of over 6,000 of the snails at allow mining to proceed. In its 2007 annual report, the company complained that "unfortunately, months of delays, due firstly to permitting and in collecting increasing numbers of snails, and lastly, to environmental protesters, forced the cancellation of five export shipments in the year and resulting loss in profit."

SLAPP Happy
In 2005 an application by Solid Energy for $NZ379,342 in witness costs and legal expenses against two environmental groups was dismissed. Forest and Bird and the Buller Conservation Group (BCG) had argued before the Environment Court against approval for a new open-cut coal mine. While the Court approved the project, it dismissed the company's costs claim. Forest and Bird's Regional Conservation Officer, Eugenie Sage, said the company "was trying to punish Forest and Bird and BCG for daring to oppose the mine. This was clearly a strategic law suit against public participation SLAPP."

In March 2007 Solid Energy lost a bid to suppress the publication by a coalition of environmentalists of a spoof corporate social responsibility report. The company sought an injunction from the High Court to have a two-part report removed from the website of the Save Happy Valley Coalition. The coalition opposes the company's move to build a new open-cut coal mine which involves the relocation of a population of critically-endangered snails. Before the court hearing, Solid Energy's chief executive, Don Elder, told a parliamentary committee hearing that the document was defamatory and could lead the community and regulators to make "wrong decisions.". "We can't afford to let that happen," he said. A spokeswoman for the coalition, Frances Mountier, said the company's failed bid to suppress the report revealed how they wanted "to keep it quiet about what they are doing to waterways, species and climate."

Renewable energy company acquisitions
Solid Energy has recently been investing in renewable energy companies. Nature's Flame, a company selling wood pellet fired heating, was purchased in 2003. In May 2007 Solid Energy bought the Christchurch-based Canterbury Biodesiel, which was then renamed New Zealand Biodesiel. The company also bought the family-owned, Nelson based solar hot water heating company Sensible Heat in July 2007. It would be used as a basis for a unit of Solid Energy called Switch.

Senior management

 * Don Elder, CEO

Board of Directors

 * John Palmer, Chairman
 * John Spencer (New Zealand company director)
 * Alan Broome
 * Helen Cull, QC
 * John Fletcher
 * John McDonald (New Zealand company director
 * Tony Williams
 * Adrienne Young Cooper

Affiliations
Solid Energy is a member of the following industry associations and groups:
 * World Coal Institute (Don Elder, Director; Alison Brown, Alternate Director)
 * International Energy Association Coal Industry Advisory Board (Don Elder)
 * Coal Association of New Zealand (Don Elder, Director)
 * CRL Energy (Barry Bragg, Director)
 * Greenhouse Policy Coalition (Alison Brown, Chairperson)
 * CO2CRC (Don Elder, Director; Tim Moore, Alternate Director)
 * CO2CRC Pilot Project Ltd (CPPL -- Don Elder, Director; Tim Moore, Alternate Director)
 * New Zealand Minerals Industry Association (Alison Brown, Vice-President)
 * International Business Forum (Don Elder, Director)
 * India New Zealand Business Council (Barry Bragg, Director)
 * New Zealand Captive Insurance Association (Warren Maslin)
 * Mines Rescue (Robin Hughes, Chairman; Steve Bell and Craig Smith, Trustees)
 * Bioenergy Association of New Zealand (Andy Matheson, Director)
 * New Zealand Hydrogen Project Governance Panel (Don Elder)
 * New Zealand EnergyScapes Project Governance Panel (Don Elder)
 * New Zealand Business Council for Sustainable Development
 * Coal 21
 * Energy Federation of New Zealand
 * Major Electricity Users Group
 * New Zealand Society for Risk Management
 * MinEx Health and Safety Council (John Kay, Board Member)
 * Extractive Industries’ Training Organisation (Bill McDonald, Board Member)
 * Minerals West Coast (Mike Lynn, Trustee)
 * Maritime Law Association of Australia and New Zealand
 * New Zealand Shippers Council
 * New Zealand Organisation for Quality

Other SourceWatch Resources

 * New Zealand and coal
 * SLAPPs
 * SLAPP's in Australia
 * SLAPP's in New Zealand
 * Thompson & Clark Investigations

Contact details
Solid Energy New Zealand Ltd PO Box 1303, Christchurch, 8013 2 Show Place Addington Christchurch, 8024 New Zealand Tel: (03) 345 6000 Fax: (03) 345 6016 Web: http://www.solidenergy.co.nz/